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EURUSD – This analysis shows why we might be at the ALL STARS ALIGN conditions

This analysis shows EURUSD in a multiple timeframe situation and points why we might expect a 600 pips movement in the near term. This analysis only available for Tflow® graduates

Weekly Trendline and Fibonacci Retracement shows price near to resistance

Snap and that long term trend line shows EURUSD at resistance

Bearish Divergence Shown in both MACD and Stochastic – Suggests a possible downturn

Indicators show Bearish Divergence

Although I hardly use indicator, but I do check them always to provide additional confirmation. Both MACD and Stochastic shows bearish divergence – this is an indication that EURUSD might be heading down. What is required is a price confirmation to this bearish divergence

Daily chart shows trend change

Daily shows trend change

On daily chart, we see a double top, with second top shown a potential HS pattern.

This suggests that trend reversal might be in placed. Friday closed below previous low created. This is a bearish sign.

A retracement back to resistance in the form of 1234 in lower timeframe (H1/H4) presents us with usual setup for a bearish stance.

Support lies at 13310-60. However I’m looking at the far support 12950 as the final frontier.

Update on 20 Jan 1.56pm

EURUSD opened and traded negatively. On day close, it has closed below previous low, thus confirming the bearish stand.

Attached chart shows possible resistance zone that EURUSD might retrace to and get resisted. Most important is always look for a 1234 pattern as taught.

Price action trading can be easy with Tflow®
Price action trading works very well when currency trader combines price information into a rule based approach. In this post, we look at price action ‘boxes’ drawn on MT4 to visualise trend. Example with EURCAD.